Self-Driving Portfolio

The Self-Driving Portfolio (“SDP”) from Caritas is an autonomous, all-asset portfolio much like the “robo-portfolios” at other major investment firms (e.g., Vanguard, Schwab, or Fidelity), however this portfolio is fully invested among all asset classes with a downside buffer in the form of covered call options.

Applying the Warren Buffet approach to long-term investing we subscribe to a buy and never sell philosophy. The SDP is balanced quarterly to maintain allocation percentages, diversified among roughly a dozen ETFs, each with low internal turnover and low fees, set for long term capital appreciation and income.

EXAMPLE OF A TYPICAL SDP PORTFOLIO:

Unlike regular mutual funds, the funds in this portfolio are eligible for call option trading, enabling additional income and a hedge against a down market, with diversification in multiple asset classes globally (i.e., stocks, bonds, real estate holdings, cryptocurrency, precious metals, etc.). This low-fee strategy provides maximum diversification and removes the need to hire or fire money managers or choose among the thousands of various actively managed mutual funds, 90% of which underperform the index. (See “Covered-Call Options Strategies” to learn more about this investment methodology.)

Examples of the SDP holdings might be some of the following: Vanguard Real Estate Index ETF (symbol: VNQ), BlackRock Biotech iShares (“IBB”), VanEck Semiconductor Index (“SMH”), Nasdaq-100 Invesco ETF (“QQQ”), State Street Dow 30 SPDRs Index (“DIA”), SPDRs S&P 500 Index (symbol: SPY), among dozens of other liquid ETFs, all trading on the New York or American stock exchange.

*Source: Investopedia, “Expense Ratios of Typical Domestic Equity Mutual Funds,” June 14, 2021.